Offshore oil platforms are seen on April 20, 2020, in Huntington Beach, California. The spread of coronavirus (COVID-19) as oil prices first negatively impacted business demand in the region.
Michael Heimann | Getty Images
Oil prices rose on Wednesday after a sharp drop in US raw materials, with the market awaiting more direction from a meeting by OPEC and its partners on future production levels.
Brent crude futures rose 10 cents, or 0.2%, to $ 4349 a barrel at 0049 GMT and US West Texas Intermediate (WTI) crude futures rose 14 cents, or 0.4%, to $ 40.43 a barrel.
In a sign of an improvement in demand despite the coronovirus epidemic, according to data from the US crude oil industry, analyst expectations fell to 8.3 million barrels in the week to July 10, down to 2.1 million barrels a week.
Official data from the US Department of Energy’s Energy Information Administration (EIA) is set to arrive on Wednesday.
On supply, the market will closely monitor the Joint Ministerial Monitoring Committee (JMMC) of the Organization of Petroleum Exporting Countries (OPEC) on Wednesday.
Key members of OPEC and allies, including Russia, a group, known as OPEC +, are set to decide which output cuts of 9.7 million barrels per day (bpd) ending in July To be increased or reduced to 7.7 million bpd.
“The decision to cut OPEC + production will change the oil market,” ANZ Research said in a note.
In June, OPEC and its partners complied 107% with their agreed oil production cuts, an OPEC + source said on Tuesday.
Meanwhile, OPEC said in its monthly report that global oil demand will register 7 million bpd in 2021, as the global economy recovers from the coronovirus epidemic, although it will remain below 2019 levels.